Role of Government

The Great Misallocators: What Barack Obama and General Electric have in common..

President Obama on Tuesday night stressed U.S. economic competitiveness as a new policy theme, accentuating the point he made last week by naming General Electric CEO Jeffrey Immelt to lead his new jobs council. This is welcome, though not solely because it may signal less Administration hostility to business. The pairing is also instructive because both Mr. Obama and GE symbolize a major reason the U.S. has become less competitive—the misallocation of resources.

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Union move on profit daycare

Wannan pines for the good old days in Australia when central planners controlled the entire child care industry. Federal subsidies were once handed out exclusively to the non-profit sector and operators were told where they could open. The result was a dysfunctional system incapable of meeting parent demands. But according to Wannan this was “one of the best child care systems in the world.”

Fools Rush In

It goes without saying that the federal government will help pay for the recovery of Louisiana and Mississippi. But once the emergencies have been addressed and the disaster-stricken areas are back to normal (or as back to normal as one can hope), lawmakers at the federal and state level should take a sober look at who should be responsible for minimizing the damage of future disasters.

Bike Protectionism

The special interest groups who want to keep inexpensive bikes out of consumers’ hands include the Syndicat des Metallos, which doesn’t like competition from countries where labour gets relatively lower wages (because of underdevelopment).

We Need 250 States

Terry Anderson and Peter Hill make an argument that suggests that democracy does not scale well. As the size of the constituency group gets large, the politician becomes less accountable. Politicians find it easier to extract rents and abuse powers